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The Ultimate Source of Inflation: A Microfoundation of the Fiscal Theory of the Price Level

Harashima, Taiji - EconWPA - 2004

The paper explores a fundamental mechanism of inflation by explicitly including a governmentfs optimization problem … into a general equilibrium model assuming a Leviathan government. The result is clear- cut and beautiful: inflation is … that explains various types of inflation, e.g. hyperinflation, chronic inflation, disinflation and deflation, by this …

Persistent link: https://www.econbiz.de/10005126462

THE ROLES OF MONEY IN AN ECONOMY AND THE OPTIMUM QUANTITY OF MONEY

Feige, Edgar L.; Parkin, M.; Avery, R; Stones, C. - EconWPA - 2005

What is the optimum quantity of money in a society? This paper answers this question both from the perspective of a utility maximizing model with real balances in the utility function, and employing an inventory theoretic model which focuses attention on the costs of transacting in different...

Persistent link: https://www.econbiz.de/10005076699

Should we be afraid of Friedman's rule?

Uhlig, Harald - EconWPA - 2000

Should one think of zero nominal interest rates as an undesirable liquidity trap or as the desirable Friedman rule? I use three different frameworks to discuss this issue. First, I restate Cole and Kocherlakota's (1998) analysis of Friedman's rule: short run increases in the money stock -...

Persistent link: https://www.econbiz.de/10005561156

The Misallocation of Resources of Anticipated Inflation

Frenkel, Michael; Mehrez, Gil - EconWPA - 1997

This paper analyzes the effects of anticipated inflation on the resource allocations between production and financial … of each sector depends, among other factors, on the inflation rate. Higher inflation increases the marginal revenues of … costs of inflation. To estimate the change in the production structure and, thus, the costs of inflation we analyze data …

Persistent link: https://www.econbiz.de/10005126418

EXPECTATIONS AND ADJUSTMENTS IN THE MONETARY SECTOR

Feige, Edgar L. - EconWPA - 2005

This paper examines the problem of appropriately specifying and estimating the money demand function in the presence of adaptive expectations and partial adjustment mechanisms. The paper demonstrates the difficulty of interpreting distributed lag reduced form representations of the monetary...

Persistent link: https://www.econbiz.de/10005076678

ALTERNATIVE TEMPORAL CROSS-SECTION SPECIFICATIONS OF THE DEMAND FOR DEMAND DEPOSITS

Feige, Edgar L. - EconWPA - 2005

This paper examines a broad set of alternative temporal cross- section specifications of the demand for money as a means of estimating the degree of substitution between demand deposits and other liquid assets. Despite differences in data bases, model specifications and estimation techniques,...

Persistent link: https://www.econbiz.de/10005076813

On Stability of the Demand for Money in a Developing OECD

HALICIOGLU, Ferda; UGUR, Mehmet - EconWPA - 2005

This paper empirically analyses the stability of the narrow money demand function (M1) in Turkey for the period 1950-2002. As part of the IMF-sponsored stabilisation programme, Turkey has been pursuing base money targets. To ascertain whether this policy framework satisfies the necessary...

Persistent link: https://www.econbiz.de/10005561131

Money Demand in EU Countries: A Survey

Browne, Frank; Fagan, Gabriel; Henry, Jerome - EconWPA - 2005

Money demand is probably one of the most extensively studied economic relationship in applied economics. While useful surveys of existing literature are available, much of the attention has focused on the US. However, a considerable number of papers have recently been produced dealing with the...

Persistent link: https://www.econbiz.de/10005561222

Government Financing and Interest Rates in a Three Assets Sidrauski-based Model

Pozo, Eduardo - EconWPA - 2000

and capital, and 2.-the inflation rate affects the real interest rate on bonds negatively. …

Persistent link: https://www.econbiz.de/10005561254

Money Demand in theEuroArea: Do National Differences Matter?

Dedola, Luca; Gaiotti, Eugenio; Silipo, Luca - EconWPA - 2004

This paper assesses the relevance of national information in estimating the demand for euro-area M3 from three perspectives. First, we check whether national money demands can legitimately be aggregated. Second, we compare time-series and panel methods to estimate aggregate long-run...

Persistent link: https://www.econbiz.de/10005412612